Illustrations of accounting policies-financial statement, Financial Accounting

Illustrations of Accounting Policies

A Ltd., has decided to change its policy of writing off borrowing costs to capitalizing the same. As at 31st December, 2003, the company had written off borrowing costs amounting to £200,000. During the year ended 31/12/04.  The company reported profit for the period of £450,000 but after charging borrowing costs of £50,000.  As at 31/12/03 the retained profits were £1,500,000. Other transactions were:-

•    Transfer from revaluation reserve on sale of PPE - £40,000
•    Transfer from retained profits to general reserve - £50,000
•    Interim dividends paid - £200,000

Required: 
Prepare the statement of changes in equity extract for the year-ended 81/12/04

 

Retained profits

 

£

Balance as at 1.1.2004

1,500,000

Change in accounting policy

  200,000

Balance as restated

1,700,000

Transfer from revaluation reserve on sale of PPE

40,000

Profit for the period (450,000 + 50,000)

500,00

Transfer to general reserve

(50,000)

Interim dividends paid

(200,000)

Balance as at 31/12/2004

1,990,000

Posted Date: 12/12/2012 12:51:25 AM | Location : United States







Related Discussions:- Illustrations of accounting policies-financial statement, Assignment Help, Ask Question on Illustrations of accounting policies-financial statement, Get Answer, Expert's Help, Illustrations of accounting policies-financial statement Discussions

Write discussion on Illustrations of accounting policies-financial statement
Your posts are moderated
Related Questions
FV of Bond 20000, CR 0.045, MR 0.059, Remaining payments 32. Answer

Question: a) Show the different parts of a bidding document for works. b) Describe  five advantages of Dispute Resolution over Termination of Contracts. c) Show the diffe

Calculate the DuPont Model, given the following information: cash=$16,080; accounts receivable= $9,500; prepaid = $3,150; supplies =$675; equipment =$25,200; accumulated depreciati

An annuity is explained as stream of uniform duration cash flows. The payment of life insurance premium through the policyholder to the insurance company is an illustration of an a

O'Neill Co. has $298,106 in accounts receivable on January 1. Budgeted sales for January are $840,001. O'Neill expects to sell 20% of its merchandise for cash. Of the remaining 80%

IAS 1 contents of financial statements IAS 1 prescribes the contents of published financial statements. The major reports that are included as part of the published financial sta

As of January 1, 2011, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash 80,000 non cash

HOW TO CALCULATE SINKING FUND METHOD

Completed executions A judgement creditor cannot retain the "benefit" of an execution or attachment, unless he has completed it- Before the date of the receiving order,